Intel CEO Patrick Gelsinger Purchases $251,198 in Company Stock

Patrick Gelsinger, the CEO of Intel Corporation (NASDAQ: INTC), recently made a significant investment by purchasing 11,150 shares of the company’s common stock, amounting to around $251,198. This acquisition occurred at a weighted average price of $22.529 per share on November 4, 2024. Following this transaction, Gelsinger's total direct ownership in Intel has increased to 105,033 shares.

Furthermore, Gelsinger also owns shares indirectly through various trusts. After this recent purchase, his indirect ownership varies across different accounts, ranging from 1,480 to 191,926 shares.

In related news, the ride-hailing firm Lyft (NASDAQ: ) and autonomous vehicle technology company Mobileye have entered into a partnership focused on launching self-driving vehicle services. This collaboration will enable operators of autonomous vehicles to acquire cars equipped with Mobileye Drive, which can be seamlessly integrated into Lyft’s platform. This move provides these operators access to Lyft’s 40 million annual riders, enhancing fleet efficiency and profitability.

Recently, Intel Corporation reported a revenue of $13.3 billion for the third quarter, marking a 4% increase compared to the previous quarter. The revenue from Intel's programmable chips division, Altera, rose by 14% sequentially, reaching $412 million in the quarter that ended on September 30. Reports indicate that private equity firms Silver Lake and Bain Capital are preparing to bid for a minority stake in Altera, which Gelsinger has mentioned may be a precursor to an initial public offering (IPO) planned for early 2025.

These developments illustrate the ongoing strategies of both Lyft and Intel as they adapt to financial challenges and reorganize their business approaches.

Insights from InvestingPro

Patrick Gelsinger's recent share purchase aligns with noteworthy insights from InvestingPro. Despite facing current challenges, InvestingPro Tips indicate that 13 analysts have adjusted their earnings forecasts upward for Intel, hinting at a potential positive outlook for the company's future performance.

Intel maintains a market capitalization of $107.7 billion, solidifying its status as a key player in the Semiconductors & Semiconductor Equipment industry. This coincides with another InvestingPro Tip that underscores Intel's significance within the sector.

The financial metrics of Intel reveal a complex scenario. For the last twelve months as of Q3 2024, the company reported a revenue of $54.25 billion, showing a modest growth of 2.62%. However, operating income for the same period was negative, totaling -$3.73 billion, resulting in an operating income margin of -6.88%. This data reinforces the InvestingPro Tip suggesting that analysts do not expect the company to achieve profitability this year.

Despite these obstacles, Intel has seen a positive return over the last three months, with a total price return of 18.35%. This encouraging performance may have influenced Gelsinger’s decision to enhance his stake in the company.

For investors interested in further analysis, InvestingPro provides additional insights that could shed light on Intel's financial health and future prospects.

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Intel, Investment, Shares